Satya Nadella, CEO of Microsoft, is seeing his work at the head of the company rewarded with a significant increase in his remuneration. Indeed, your compensation packageas they call the set of concepts that make up their salary, has improved by 10% compared to last yearuntil reaching the 54.946 million of dollars. This has been reflected in the company’s 2022 Representation Statement.
Nadella’s base salary hasn’t changed, and remains set at $2.5 million. But his stock compensation is now $42.269 million, up from $33 million in 2021. His non-stock incentive compensation plan has dropped from $14.2 million to $10.06 million. .
Another concept of managerial compensation, called “all other compensation«, has totaled 110,250 dollars. Of those, $100,000 were charitable gifts. Of course, around this compensation package is based on performance, compared to 71% that was variable based on said concept in 2021.
Microsoft’s revenue grew 18% in the year ended June 30, to $198.3 billion. These include an advance of 32% in those of its cloud division, which entered 91,200 million dollars in the year. Microsoft’s operating profit for the year improved 19% to $83.4 billion. Net income grew by the same percentage, reaching $72.7 billion.
Without a doubt, a more than notable difference with the figures that Microsoft had when Satya Nadella took over the reins. At the time, the company had $86.8 billion in annual sales revenue, net income was $22.1 billion, and earnings per share was $2.63. Now, shareholders earn $9.65 per share.
In view of the results, as stated in the aforementioned Declaration, «Shareholders expressed a desire to ensure Mr. Nadella’s retention and motivation, and independent Board members continue to have great confidence in Mr. Nadella’s exceptional leadership at Microsoft.«.
However, the company’s growth has slowed in the past year, as have several similar companies, after stagnant economies around the world. Microsoft’s share price, in parallel, has fallen 32% in the last 12 months. While, the median salary of Microsoft employees in fiscal year 2022 of the company was $190,302which means that for this year, the ratio between the CEO’s compensation and the employee’s median has been 289 to 1.
